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Modelling procurement effects on cooperation

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  • Eriksson, Per-Erik
  • Pesämaa, Ossi

Abstract

Cooperative arrangements, such as partnering, have received increased interest in recent years. Several studies show however that cooperative relationships are not easily achieved in construction. Implementation of cooperative relationships requires changes in several elements of the traditional procurement procedures. The purpose of this paper is therefore to propose and test a sequential model regarding clients’ cooperative procurement procedures. We especially ask: what elements in clients’ procurement procedures facilitate the establishment of cooperation and trust in their relationships with contractors? The model was tested through structural equation modelling. The empirical data required for the test were collected through a survey responded to by 87 Swedish professional construction clients. The empirical results show that cooperative procurement procedures are triggered by clients’ wish to involve contractors early in specification, which has a simultaneous effect on procedures regarding bid invitation and compensation. Furthermore, these simultaneous effects breed a certain kind of partner selection based on task-related attributes, which also has a direct positive effect on trust and above all on cooperation in client–contractor relationships. Besides these implications from the model, the improvement of measurements for future modelling is discussed.

Suggested Citation

  • Eriksson, Per-Erik & Pesämaa, Ossi, 2007. "Modelling procurement effects on cooperation," MPRA Paper 8730, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:8730
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    References listed on IDEAS

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    Cited by:

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    2. Per Erik Eriksson, 2010. "Partnering: what is it, when should it be used, and how should it be implemented?," Construction Management and Economics, Taylor & Francis Journals, vol. 28(9), pages 905-917.
    3. Shahin Mokhlesian, 2014. "How Do Contractors Select Suppliers for Greener Construction Projects? The Case of Three Swedish Companies," Sustainability, MDPI, vol. 6(7), pages 1-19, June.
    4. Milovanović, Bojan Morić & Primorac, Dinko & Kozina, Goran, 2019. "Influence of Strategic Networking on Business Performance; Evidence from Manufacturing SMEs Operating in a Predominantly Service Based Economy," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2019), Rovinj, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 12-14 September 2019, pages 108-119, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    5. Hemanta Doloi & Anil Sawhney & K.C. Iyer, 2012. "Structural equation model for investigating factors affecting delay in Indian construction projects," Construction Management and Economics, Taylor & Francis Journals, vol. 30(10), pages 869-884, October.
    6. Bojan Moric Milovanovic & Dinko Primorac & Goran Kozina, 2020. "The impact of strategic networking on business performance of manufacturing SMEs operating in a predominantly service based economy," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 18(2B), pages 194-207.
    7. Pesämaa, Ossi, 2007. "Development of relationships in interorganizational networks: studies in the tourism and construction industries," MPRA Paper 8478, University Library of Munich, Germany.

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    More about this item

    Keywords

    Construction; cooperation; procurement;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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